New York Life Insurance Company announced on Feb. 11 that its LTCSelect Premier long-term care insurance product will pay a dividend to policyholders this year. This is the seventh consecutive year that New York Life has paid a long-term care insurance dividend.
The LTCI market has seen plenty of turmoil in the past year as many carriers have announced plans to dramatically raise rates for in-force policies or plans to stop marketing LTCI products. Guardian announced Feb. 4 that it will halt sales of its proprietary LTCI product by the end of 2011. Back in November, MetLife announced it would halt the sale of new LTCI coverage at the end of 2010 after citing "financial challenges" in the business. In September 2010, John Hancock Life Insurance Company announced an average 40% rate hike for most of its in-force LTC policies.
New York Life's long-term care insurance sales increased 12% in 2010, and the company's sales in December 2010 were the highest monthly sales on record. The company released a statement on Friday voicing that it is committed to the long-term care insurance business and, to further its efforts in growing this market throughout the country, is significantly increasing its sales support infrastructure.
"The continued ability to pay a dividend in these times of economic stress when other insurers are exiting the business or raising rates, sends a strong message that New York Life's mutual structure keeps us uniquely aligned with our policyholders," said Mike Gallo, senior vice president in charge of Long-Term Care Insurance at New York Life. "This structure allows us to focus on long-term value and stability for our customers. Our solid sales growth in 2010 is evidence that Americans are responding to this message. With the average cost of a private room in a nursing home in the U.S. now around $80,000 annually, we remain committed to educating families and businesses about the need for long-term care insurance. The recent expansion of our sales support resources enables us to more broadly spread awareness about the significant role long-term care insurance plays in any well thought-out financial plan."
New York Life declared its first dividend to long-term care insurance policyholders in 2005. LTCSelect Premier policyholders qualify for the dividend payment when they reach their third policy anniversary. In addition to being one of only two companies currently paying a dividend on long-term care policies, New York Life is one of only a few insurers that has never raised premium rates on in-force policies.
Please visit New York Life's Web site at www.newyorklife.com for more information.
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